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2018 (2) TMI 1631 - AT - Income TaxAddition u/s 145A on account of CENVAT credit - Held that:- The assertions made on behalf of the assessee that assessee has consistently followed exclusive method of accounting with due certification by the tax auditor for recording the inventory which is subject matter of dispute in valuation. We also notice the plea of the assessee that adopting ‘inclusive method’ of accounting will not alter the resultant profits and such change of accounting will be a revenue neutral exercise over a period of time. We also notice that similar issue raised against the assessee in its own case for AY 2009-10 was also reversed by the CIT(A). Thus we concur with the view taken by the CIT(A). It is not gain saying that unutilized CENVAT credit only represents the availability of excise credit at the disposal of the assessee at the end of the year eligible to be set of against future liability Therefore, apparently the unutilized CENVAT credit cannot be adopted for the purposes of valuation of inventories in sphere of s.145A of the Act. - Decided in favour of assessee.
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